The following is a summary of the Super Group (SGHC) Limited Q4 2023 Earnings Call Transcript:
Financial Performance:
Super Group recorded a record-breaking total revenue for 2023 at €1.406 billion, an increase of 8% YoY and 19% in constant currency.
Total revenue for Q4 2023 was €352 million, up 7% YoY and 15% in constant currency.
Operational EBITDA for 2023 was €255 million, surpassing expectations, while Q4 EBITDA grew to €54 million.
The company's sports book revenue faced a decline, to €53 million, due to customer-friendly results in soccer and the closure of the Indian market.
Casino net revenues increased by 22% YoY, reaching €289 million with growth in African, Canadian, and European markets.
SGHC managed to reduce operating costs as a percentage of net revenue by 3%, attributing it to strategic cost cuts and efficiency improvements.
The EBITDA margin for the year was 18%, an improvement of 200 basis points compared to 2022.
The US operation's net EBITDA loss for the quarter was €18 million, and the full year investment rose to €57 million.
Business Progress:
Super Group expanded its online sports betting and iGaming operator status, and customer numbers grew to an average of 4.7 million unique active monthly customers in 2023.
The company launched its Jackpot City brand into its first African market and the UK, exhibiting growth in Europe, Italy, Spain, and the UK particularly.
Super Group finalized agreements to take control of Betway global sports book technology and sold DGC's B2B assets to Games Global to focus on worldwide B2C business growth.
The company is currently focusing on reassessing their geographical footprint, evaluating their US strategy on a state-by-state basis.
Despite challenges in the sports book segment, the company exhibited strong growth in the casino market, and aims for a double-digit top line growth, increase in EBITDA, and meaningful free cash flow in 2024.
By the end of 2023, the company held unrestricted cash of €242 million, with no debt.
The company is upgrading their technology with AI and process enhancement in 7 out of their 9 states to drive long-term efficiency and innovation.
The company continues to re-evaluate their US market strategy, aiming to maintain or reduce its 2024 adjusted EBITDA loss and is exploring M&A activities.
More details: Super Group IR
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